The tailoring of an accounting report to meet the needs of a specific decision maker is more characteristic of financial accounting reports than of management accounting reports.

Question

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Tailoring accounting reports to meet specific needs is more characteristic of management accounting reports, which are produced for internal decision making, rather than financial accounting reports, which are produced for external stakeholders such as investors and regulators. Financial accounting reports adhere to generally accepted accounting principles and must provide standardized, objective information to be comparable across different companies.

The Tailoring of an Accounting Report to Meet the Needs